In a notable departure from his earlier tariff-heavy trade strategy, US President Donald Trump has rolled back duties on a wide range of imported agricultural and processed-food items. The decision, effective from November 13, eliminates a 50% reciprocal tariff on hundreds of goods—many of which form part of India’s export basket.
This comes as the administration faces rising criticism over consumer prices and pressure to stabilise the domestic food market.
What Triggered the Change?
The revised exemption list—released as Annexure II—reflects what Trump called “additional information and recommendations” from trade and economic advisors. In his executive order, the president stated that certain agricultural products should no longer fall under the earlier tariff regime, marking a clear softening of a policy that once defined his trade stance.
The update covers 254 new items, including 229 agricultural products, representing over $1 billion of India’s exports to the US.
A Boost for India’s Agri Exporters
India’s agricultural shipments to the US are valued at roughly $5.7 billion annually. Although the newly exempted products form a smaller chunk of that total, the strategic importance is far greater than the numbers suggest.
Key Products Now at Zero Duty
- Fruits and nuts: mangoes, guavas, coconuts, cashews, bananas, pineapples, areca nuts
- Tea and coffee: all 12 categories exported by India
- Spices: nearly all varieties except thyme, totaling $358.66 million in export value
- Processed foods: juices, cocoa preparations, fruit pulps, coffee extracts, vegetable waxes
- Essential oils: now newly classified and allowed with zero-duty access
These categories align with India’s strong global export performance, particularly in high-value, labour-intensive agricultural segments.
Why This Matters for India’s Farmers
Trade experts note that while the dollar figures may not appear headline-grabbing, the real impact lies in the agricultural value chain, where millions of workers depend on steady demand.
Removing duties:
- Makes Indian products more competitive
- Levels the playing field with other suppliers
- Encourages value-added production rather than raw commodity exports
- Supports small growers, farmer cooperatives, and processing units
With established supply networks and deep diaspora-linked demand, India is positioned to scale quickly.
Domestic Politics Behind the Tariff Retreat
The move is also tied to America’s domestic economic mood. Voters in several states expressed frustration over rising prices during recent off-year elections, leading to significant Democratic victories. Trump acknowledged that tariffs “may, in some cases” push consumer prices up—an unusual admission from a leader who has long defended them as cost-free.
Record-high beef prices, influenced partly by tariffs on Brazil, created additional political pressure.
Speaking aboard Air Force One, Trump described the rollback as “a little bit of a rollback on some foods like coffee,” but the implications are far larger.
What Happens Next?
The tariff reversal could reset trade dynamics between India and the United States, opening opportunities for long-term collaboration in food supply chains, specialty foods, and processed agricultural goods. For US consumers, the change may ease inflationary pressures on premium food categories.
For India, it represents both economic potential and validation of its reputation as a reliable agricultural supplier.
